Johnson & Johnson is offering at least $8.9 billion to settle thousands of lawsuits filed by people claiming that the company’s products containing talc caused cancer.
The suggested settlement, payable over 25 years, is $6.9 billion more than its previous offer in connection with a 2021 bankruptcy filing by its LTL Management unit.
Women have filed a barrage of suits in recent years alleging that J&J’s baby powder gave them ovarian cancer or mesothelioma, cancer that strikes the lungs and other organs.
More than 60,000 parties who have sued J&J are backing the proposed settlement.
Settlement By Johnson & Johnson
“The newly announced settlement marks a significant victory for the tens of thousands of women suffering from gynecological cancers caused by J&J’s talc-based products,” a group of plaintiffs’ law firms said in a statement.
“Under the terms of the agreement, all talc claimants will be able to have their claims evaluated and assessed within one year of plan confirmation, ensuring a swift and efficient resolution for victims of the company’s misconduct.”
Johnson & Johnson continues to deny that its talcum powder poses health risks, saying that the settlement offer does not constitute an admission of wrongdoing.
“The company continues to believe that these claims are specious and lack scientific merit,” Erik Haas, worldwide vice president of litigation at Johnson & Johnson, said in a statement. “However, as the bankruptcy court recognized, resolving these cases in the tort system would take decades and impose significant costs on LTL and the system, with most claimants never receiving any compensation.”
The proposed settlement must now be approved by a bankruptcy judge.
Lawsuits against J&J have contributed to declining sales for its talcum-based baby powder, and the company last year said it would stop selling the product worldwide.
J&J’s stock rose 3% in after-hours trading Tuesday after the company’s announcement.
However, attorneys representing thousands of plaintiffs think the settlement amount is not enough as they issued a release late Tuesday opposing it. “This sham deal does not even pay for most victims’ medical bills,” said Jason Itkin, founding partner of the Houston-based personal injury law firm Arnold & Itkin LLP.
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